Lottomatica online revenue rises 13% ahead of CIRSA merger votes

Management segment figures for the nine months ended 30 September 2026, as reported.

Money wagered in Sports Franchise grew 11%, despite revenue falling 1%. Lottomatica attributed the revenue weakness mainly to less favourable sports betting payouts. Customers wagered more; the operator retained a smaller share after winnings.

Online supplied about 45% of revenue and two-thirds of adjusted EBITDA, our calculation from the segment figures shows. Adjusted EBITDA is a company-adjusted earnings measure before interest, tax, depreciation and amortisation. It differs from net profit.

That earnings concentration helps explain the attraction of digital expansion. A physical outlet can still bring customer relationships and local recognition. For the proposed group, the opportunity would be to earn more from those relationships through a broader service. The retail results alone cannot establish how many customers would choose to move between channels.

Lottomatica has already used acquisition to expand its business. On 24 April 2024, its indirectly owned subsidiary GBO completed the purchase of all of SKS365 Malta Holdings. That gives the group an acquisition precedent. Expanding a model across several countries will still require it to adapt to local markets.

CIRSA already operates online. Its Sportium business combines a retail betting network with digital sports betting and casino products. The proposed combination would therefore bring together existing businesses, customer relationships and ways of working. Any improvement has to account for what is already in place.

There is a British connection in that history. In July 2019, GVC, the group now called Entain, agreed to sell its 50% Sportium stake to joint venture partner CIRSA for €70 million in cash, plus loan repayments and excess cash distributions. GVC had inherited the holding through its acquisition of Ladbrokes Coral.

The 2019 agreement concerned consolidating ownership of an established betting business. The new proposal asks a further question: can a larger group improve the economics of businesses it brings together? Local recognition may help a digital service attract attention, but the service still has to give customers a reason to use it.

Lottomatica put a number on that opportunity on 7 September. It estimated €200 million to €300 million of incremental annual online EBITDA, on a run-rate basis by the third year after closing. Management linked the ambition to combining its technology, products and experience across channels with CIRSA’s customer base and local presence.

The company said that estimate was additional to the synergies announced with the transaction. Run rate describes the annual level the business is expected to reach at that point. It does not mean the group expects to collect that entire amount in each of the intervening years. The figure remains a management forecast.

Separately, the original merger announcement projected about €115 million of annual pre-tax cash savings from operating expenses and interest costs, expected by the third full financial year after completion.

Those two ambitions need different evidence. Removing duplicated costs can improve earnings without winning another customer. Digital expansion requires additional demand and spending to serve it. Future reporting will be more informative if it separates cost savings, growth from existing operations and contributions from any further acquisitions.

CIRSA shareholders would receive newly issued Lottomatica shares. The October plan also provides for a €262 million extraordinary dividend to CIRSA shareholders before the merger. Lottomatica intends to propose a further €744 million capital return after completion, subject to the relevant formalities. The September announcement said cash resources and committed debt financing would fund those distributions.

That creates competing demands on future cash generation. A combined group would need to fund expansion, absorb integration costs and service its financing alongside shareholder distributions. The important measure will be how much cash remains after those demands.

The main execution risk, in our view, is assuming that a successful Italian approach transfers easily. Product choices, payment habits, competition and operating requirements can differ across markets. A shared technology base may reduce some duplicated work; adapting the customer service around it can still require local spending and management attention.

Lottomatica lists 23 November for its shareholder meeting, while CIRSA lists 30 November and 1 December for its extraordinary meeting. The October announcement continued to put the expected effectiveness of the combination in the second quarter of 2027, subject to the transaction’s conditions.

For other gambling groups, this deal will provide a useful test of how much value digital expertise can add to an established international network. Shareholder approval would allow the transaction to advance. The more demanding proof would come afterwards, when the enlarged group has to show that it can generate the additional earnings it has forecast.